Commercial property market to remain soft: Risk Strategies

Commercial property insurance markets will remain soft in 2025 while casualty markets will be more challenging, according to a report Thursday from Risk Strategies Co.

“Generally, the property market has improved for most clients,” the Boston-based brokerage said in its State of the Insurance Market Report 2025 Outlook, released late Thursday.

High-quality property risks with no or limited catastrophe exposure and a favorable loss history are forecast to see renewals from down 30% to flat. Poorer quality risks with catastrophe exposure and unfavorable loss history should see rates down 25% to up 10%, Risk Strategies said.

Casualty markets, meanwhile, are forecast to be much less forgiving.

Hardest hit is the umbrella casualty market, with renewals forecast to be up 5% to 35%. Auto casualty rates are expected to be up 5% to 25%, while general liability is seen at up 4% to up 10%.

Workers compensation, at down 5% to up 5%, and products liability, at flat to up 5%, will see less challenging conditions.

Commercial cyber insurance markets are seen as being soft. Organizations with good controls are forecast to see rates down 20% and those with layered controls should see rates down 20% or more.

Management liability insurance markets are expected to be less forgiving than cyber markets but less challenging than casualty.

Private company primary coverage is forecast at down 5% to 15%, with excess layers down 10% to 30%.

Public company primary insurance is seen as being down 10% to flat with excess layers off 10% to 30%, according to Risk Strategies.